Late Tax Payments: What Are Your Options?

Posted on in IRS Issues

Illinois tax attorney, Illinois IRS lawyerAlthough filing personal taxes on our own has become increasingly accessible and efficient in recent years, there are still many potential bumps in the road when it comes to managing our own taxes. Personal IRS problems can arise, such as missed payments, late payments, or installment plan errors, just to name a few.

This is where individuals often run into problems and end up owing more in fees, penalties, and interest, along with whatever taxes they owe. It is easy to fall behind and land in a financial hole in these kinds of situations, which is why it is so important to know what to do and where to turn when it is time to address damage control.

If you are late filing, make sure you have filed for an extension.

First things first: You need to file for an extension if you are going to be late making your tax payments in any way, shape, or form. Penalties may apply if you do not file by the deadline, but the failure-to-file penalty is usually more than any penalty you will pay for missing a payment or being late on a payment.

Provide reasonable cause for not paying on time.

If you can somehow show reason for not filing or paying on time, such as employment conflicts, a death in the family, or unexpected expenses, you may be excused from certain penalty fees. Collect whatever evidence you have to show for such difficulties and speak with the IRS directly. It is wise to consult an experienced debt settlement attorney and a certified public accountant before you speak with the IRS to ensure you have all the necessary information you need to present your case.

Request an installment agreement.

If you are late paying your taxes due to the inability to pay by the deadline, you may be eligible for an installment payment plan that allows you to pay your taxes according to an agreed upon amount and specific schedule over a period of time. Whether you request an installment agreement plan or not, you still need to file for a proper extension if you are going to be behind on any payment. Installment agreements will subject you to interest payments and other penalty fees, but they can at least allow you more time to pay off a larger balance if you do not have the entire amount to pay up front.

Scrambling to address personal tax problems such as missed or late IRS payments can be a burden, but you do not have to face those issues alone. Speak with a knowledgeable Tinley Park tax law attorney who can help guide you and protect your rights. Call the Law Offices of Eric G. Zelazny at 708-888-2299 today for a consultation.

 

 

Sources:

https://www.irs.gov/uac/newsroom/eight-facts-on-late-filing-and-late-payment-penalties


https://www.irs.gov/uac/if-you-missed-the-tax-deadline-these-tips-can-help

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